According to a public opinion survey conducted before the release of Chief Executive John Lee Ka-chiu’s latest Policy Address, housing emerged as the most worrying concern among the public. Therefore, it is gratifying to note that the chief executive has addressed this issue in detail in the Policy Address, demonstrating his administration’s determination to tackle the long-standing housing problems, particularly for the poorest, the younger generation, and the elderly.

The greatest grievance of those of the younger generation is their inability to own a flat because of the disproportionately high housing prices relative to their incomes. This dissatisfaction has negatively affected social harmony and their sense of belonging, contributing to social unrest in 2019-20, when demagogues misled many gullible young people into violent demonstrations against the government.

One of their biggest challenges is  to produce a substantial down payment for purchasing a flat. Surveys have suggested that accumulating the necessary down payment will take 19.4 years of regular savings. The government has addressed this hindrance by relaxing the maximum loan-to-value ratios of mortgage loans to 70 percent for all home purchases, while easing the maximum debt servicing ratio to 50 percent for all home purchases. These changes will make it easier for young people to produce the necessary down payment for purchasing a flat.

Additionally, new arrangements will be introduced to enhance their chances of purchasing Home Ownership Scheme (HOS) flats. The overall supply of HOS flats will be increased by adjusting the ratio of Public Rental Housing (PRH) to Subsidized Sale Flats (SSFs), which include HOS flats, from the current 7-to-3 to 6-to-4. Furthermore, applicants who have made repeated attempts to purchase SSFs will now receive an extra ballot number if they fail to buy in the previous two consecutive sale exercises.

Another important measure is to combat tenancy abuse in PRH, thereby making more PRH units available for applicants. In recent years, the Hong Kong Housing Authority (HKHA) has intensified its efforts to address PRH tenancy abuse, achieving notable success. Over the last two years, the HKHA has recovered 5,000 PRH flats arising from tenancy abuse and breaches of tenancy agreements — equivalent to constructing a midsize housing estate. The HKHA will launch the Cherish Public Housing Resources Award Scheme in January, offering rewards to individuals who provide concrete information to identify substantiated tenancy abuse. Simultaneously, the HKHA will tighten the Well-off Tenants Policies by increasing additional rents and lowering income limits for well-off tenants. It will allow more flats to be vacated by well-off tenants for new applicants, including the younger generation.

The total public housing supply is projected to increase significantly over the next five years (2025-26 to 2029-30), reaching 189,000 units — 80 percent more than the previous five-year period (2022-23 to 2026-27). The average waiting time for PRH is expected to decrease from a peak of 6.1 years to 4.5 years by 2026-27.

With the current decline in property prices and the additional supply of government-subsidized flats, members of the younger generation have the most opportune moment in recent years to acquire their first home

Additional supply is also on the horizon, with the HKHA proceeding with 11 redevelopment projects, including those at Choi Hung Estate, Sai Wan Estate and Ma Tau Wai Estate, which will add thousands of flats in the future. Regarding land production, the supply of developable land — i.e., spade-ready sites — from government-led projects will reach about 3,000 hectares in the next decade. The government will also expedite the development of the Northern Metropolis and the Kau Yi Chau Artificial Islands projects.

For the private sector, it aims to provide 132,000 private housing units in the coming decade. The government will make land available over the next five years to provide approximately 80,000 private housing units, ensuring there is no shortage of private housing in the market. Additionally, the Urban Renewal Authority continues to play a crucial role in providing additional private housing units and is conducting planning studies for Tsuen Wan and Sham Shui Po.

With the current decline in property prices and the additional supply of government-subsidized flats, members of the younger generation have the most opportune moment in recent years to acquire their first home.

I have a few suggestions for further enhancing the housing policy. First, I believe the down payment can be further slashed to 20 percent, as in the past. Since property prices are widely believed to have declined to their lowest level in recent years and with stringent income vetting by banks, there should be a sufficient safety margin for banks to provide an 80 percent mortgage.

Second, in enforcing measures to combat PRH tenancy abuse, there should be closer collaboration with mainland authorities, as many PRH tenants have reportedly hidden their assets in bank deposits or properties on the mainland.

Third, there is the potential to accelerate the construction of public housing. I had the opportunity to visit the BROAD Sustainable Built Technology Co Ltd, a prefab building company in Changsha of Hunan province, which pioneered ultrastrong and ultralight stainless steel B-core slabs in factory-made construction, transforming global building practices. The company received the 2022 International Innovation Award from the Council on Tall Buildings and Urban Habitat and can construct a 10-story building in just one day. The HKHA should consider adopting this technology to speed up public housing construction in Hong Kong significantly.

All these measures will significantly help young people’s pursuit of happiness, giving them a true sense of belonging in Hong Kong and a motivation to participate in the country’s development.

The author is an honorary fellow of HKU Space and Hong Kong Metropolitan University, and a council member of the Chinese Association of Hong Kong and Macao Studies.

The views do not necessarily reflect those of China Daily.